Spotlight

Indian equity markets are expected to extend the positive momentum from the previous session, supported by improving global risk appetite and firm cues from international markets. Investor sentiment has strengthened after better-than-expected earnings and optimistic guidance from Micron Technology reinforced confidence in the outlook for artificial intelligence and semiconductor-related spending, helping ease concerns that had recently weighed on global technology stocks.

Although Wall Street ended the previous session on a subdued note, Micron's results were released after the market close and sparked a strong rally in U.S. futures. The positive reaction has since spilled over into Asian markets, with technology shares leading gains and supporting broader risk sentiment.  

Asian markets are trading sharply higher in early trade, with Japan's Nikkei advancing more than 2% and South Korea's Kospi surging nearly 6%, providing a strong supportive backdrop for Indian equities. The improvement in global risk sentiment, coupled with the continued decline in crude oil prices, is offering additional comfort to domestic investors and supporting expectations of a favourable market opening.

Crude oil prices have extended their recent decline and are currently trading in the $69–71 per barrel range. Oil has now erased most of the gains recorded during the recent Middle East conflict as concerns over supply disruptions have eased, geopolitical risk premiums have unwound and global supply conditions have continued to improve.  

Gold prices remain subdued near the $4,000 level as a stronger U.S. dollar and expectations of higher interest rates continue to weigh on the precious metal. 

Meanwhile, the Indian rupee is consolidating in the ?94.6–?94.7 range against the U.S. dollar, reflecting relative stability amid lower crude oil prices, improving domestic fundamentals and mixed movements across global currency markets.  

Technical view

Nifty 50

Nifty 50 continues to trade with a constructive bias, as the recent rebound from the 23,800 support zone reflects improving market sentiment and renewed buying interest at lower levels. From a technical perspective, the 24,100–24,200 region, which coincides with the 100-day Exponential Moving Average (EMA), continues to act as a crucial immediate resistance zone. A sustained breakout above this band would reinforce bullish momentum and could pave the way for a move towards the 24,400 level, followed by the 24,600 region, which remains the next significant upside target.
 
On the downside, the 24,000 psychological mark continues to serve as an important immediate support level, followed by the 23,900–23,800 support zone. Holding above this region will be critical to preserving the prevailing recovery structure and maintaining the positive undertone. However, a decisive break below 23,800 could trigger fresh profit booking and expose the index to further downside towards the 23,600 support region. Overall, the near-term technical outlook remains constructively bullish. While the broader trend has improved following the recent recovery, a sustained breakout above the 24,200 resistance zone will be essential to confirm stronger upside momentum and support an extension of the ongoing recovery towards higher resistance levels.

Bank Nifty

Bank Nifty continues to exhibit relative strength compared to the broader market and remains comfortably positioned above its key 20, 50, 100, and 200-day Exponential Moving Averages (EMAs), reflecting a strong underlying trend and sustained buying interest in the banking space. From a technical perspective, a sustained move above  58,500 level would reinforce bullish momentum and could extend the ongoing rally towards the 59,000–59,200 region, which is expected to act as the next major resistance area.
 
On the downside, the 57,600–57,500 zone, which previously acted as a resistance area, is now expected to serve as immediate support. Holding above this region will be crucial to maintaining the prevailing positive structure. However, a decisive break below this support band could trigger profit booking and drag the index towards the 57,000 support area. Momentum indicators continue to remain supportive, with the Relative Strength Index (RSI) hovering in the mid-60s, indicating healthy bullish momentum and strong market participation without entering extreme overbought territory. Overall, the near-term technical outlook remains positive. As long as Bank Nifty sustains above the 58,000 mark and its key support levels, the broader uptrend is likely to remain intact.